Correlation Between Ironbark Capital and OOhMedia
Can any of the company-specific risk be diversified away by investing in both Ironbark Capital and OOhMedia at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ironbark Capital and OOhMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ironbark Capital and oOhMedia, you can compare the effects of market volatilities on Ironbark Capital and OOhMedia and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ironbark Capital with a short position of OOhMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ironbark Capital and OOhMedia.
Diversification Opportunities for Ironbark Capital and OOhMedia
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ironbark and OOhMedia is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ironbark Capital and oOhMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on oOhMedia and Ironbark Capital is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ironbark Capital are associated (or correlated) with OOhMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of oOhMedia has no effect on the direction of Ironbark Capital i.e., Ironbark Capital and OOhMedia go up and down completely randomly.
Pair Corralation between Ironbark Capital and OOhMedia
Assuming the 90 days trading horizon Ironbark Capital is expected to generate 1.09 times less return on investment than OOhMedia. But when comparing it to its historical volatility, Ironbark Capital is 1.75 times less risky than OOhMedia. It trades about 0.01 of its potential returns per unit of risk. oOhMedia is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 122.00 in oOhMedia on September 13, 2024 and sell it today you would lose (4.00) from holding oOhMedia or give up 3.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ironbark Capital vs. oOhMedia
Performance |
| Timeline |
| Ironbark Capital |
| oOhMedia |
Ironbark Capital and OOhMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ironbark Capital and OOhMedia
The main advantage of trading using opposite Ironbark Capital and OOhMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ironbark Capital position performs unexpectedly, OOhMedia can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in OOhMedia will offset losses from the drop in OOhMedia's long position.| Ironbark Capital vs. Macquarie Technology Group | Ironbark Capital vs. Iron Road | Ironbark Capital vs. MotorCycle Holdings | Ironbark Capital vs. Ras Technology Holdings |
| OOhMedia vs. Event Hospitality and | OOhMedia vs. BTC Health Limited | OOhMedia vs. Spirit Telecom | OOhMedia vs. G8 Education |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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